That’s why I initially started looking into real estate investing. At first, I thought I could just increase the amount I was saving for retirement through single family rental houses. Then I saw that I could actually replace my income with rental properties.
My plan was to buy 10 single family house rentals and replace my income in 10 years. I actually ended up buying 5 rentals over 5 years.
I remember my daughter (who was 4 at the time), kept asking me if I had to go to work the next day. I would tell her that “yes, honey, I had to go to work”, and each time I saw her face drop in disappointment. I decided then and there that I needed to accelerate my retirement plan.
I had heard about multifamily and started to look into it in early 2015. I got some training, read some books, and started analyzing deals and making offers.
I didn’t have any previous apartment experience, and I didn’t feel like I was ready, but just did it anyway.
About 8 months later, I had my first deal under contract, a 12-unit in Monroe, Michigan, about an hour from where I lived. For the down payment, I made an early withdrawal from my IRA and used a bank loan for the rest.
Almost 6 months after closing on that deal, I purchased the 12-unit next door with a partner.
4 months after that 2nd deal, I closed on a 63-unit with a different partner.
After that, I had covered my living expenses with passive income from the apartment buildings – just under 2 years after I decided to pursue multifamily.
In early 2017, I quit my job.
Since then, my life has been so much better since I have left my full time job. I am able to get more sleep, exercise more, and do all sorts of things that I have been putting on the back burner because I didn’t have enough time. Most importantly, I have been able to spend a lot more time with my family. My relationship with my wife and kids has improved dramatically. I find that I’m able to think more strategically about my life.
Since replacing my income, I have not stopped apartment buildings because I enjoy the activity and it’s a great way to build generational wealth. I bought a 23-unit with yet another partner, and then I syndicated a 50-unit deal. Today I control a total of 160 units and don’t plan on stopping.
That first deal was like a giant domino for me. It was the hardest to do and of all the deals, took the longest. I didn’t really know what I was doing, I didn’t have a track record. I had to overcome a lot of obstacles.
But that first deal enabled the financial freedom I have now.
Once I did that first deal, the 2nd and 3rd one came almost automatically, and they kept getting bigger. In less than 2 years from when I started investing in multi-family apartments, I had covered my living expenses through passive income.
I’m excited about helping other people become financially free like me. That’s why I joined your coaching program. I want to help students do their first deal, because I know that once they do that first deal, the 2nd and 3rd deals will follow quickly and they will have replaced their incomes. That’s what I’m excited about.
- Early 2015 – Decided to pursue multifamily strategy and began research, learning, and networking
- August 2015 – Put first 12 unit on contract
- December 4th, 2015 (+8 months after deciding MF): Closed on first 12 unit
- May 27th, 2016 – Closed on second 12 unit with a partner (5.5 months after first)
- September 16th, 2016 – Closed on 63 unit with a partner (4 months after second). Replaced income – just under 2 years of deciding MF.
- Feb 24th, 2017 – Closed on 23 unit with a partner (5 months after third)
- May 19th, 2017 – Quit his job
- July 21st, 2017 – closed on 50 unit syndication (5 months after fourth)
- Total # of Units: 160 and looking for more
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